The Legend of Labubu: The Rise and Fall from Plush Toys to Crypto Assets

Labubu, the elf character designed by artist Long Jiaseng, has created a whirlwind in the toy industry in recent years. Its round body, big eyes, and mischievous smile with sharp teeth have attracted numerous fans.

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Long Jia Sheng's creative inspiration comes from Nordic folklore and mythology. He originally sketched the images of Labubu and his friends with a fountain pen, and these characters later became the protagonists of the "The Monsters" series. Labubu made his debut in 2015, but it wasn't until 2019, after collaborating with a toy company, that he truly became popular.

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In the first half of 2024, the "The Monsters" series generated an astonishing sales figure of 6.3 billion RMB. In April 2025, the third generation of Labubu products sparked a buying frenzy in multiple countries. In May of the same year, a crypto asset named after Labubu emerged, which briefly attracted attention but soon fell into a slump.

Labubu's success is closely related to its unique sales model. By adopting a blind box sales strategy, it increases the excitement and uncertainty of the purchasing process. Collector Desmond Tan stated that the surprise element of the blind box is a major attraction, and he chooses to make a purchase by shaking the blind box.

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As an excellent cultural and creative IP, Labubu has successfully crossed cultural boundaries and is popular in both Asia and the West. Its success is attributed to its cross-cultural characteristics, a combination of innovation and patience, and China's well-established industrial chain and ecosystem.

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However, the Crypto Assets related to Labubu cannot escape the fate of plummeting. This phenomenon is not uncommon in the Crypto Assets market, with similar cases like Pudgy Penguins. Although the sales of Pudgy Penguins' physical toys reached $10 million, the prices of its NFTs and Crypto Assets still dropped significantly.

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Similarly, well-known NFT projects like Bored Apes and CryptoPunks have also experienced similar price fluctuations. Even with the involvement of celebrities and large companies, the value of these digital assets remains difficult to maintain.

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These cases indicate that even with support from physical products, cryptocurrency and NFT projects that solely rely on speculation ultimately struggle to maintain their value. When market enthusiasm fades, projects lacking practical applications and value support often experience rapid depreciation. This reflects the essential characteristic of the cryptocurrency market, which "arises from speculation and perishes due to the bursting of bubbles."

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